According to settlement and execution of options, options can be divided into European options and American options. European options can only be exercised on the expiration date, such as 50ETF options and copper options. 50ETF option, the expiration date of the option is the fourth Wednesday of each month, and the option can only be delivered on this specific day. American options, the buyer can exercise on any trading day before and after the expiration date, such as soybean meal, sugar, rubber, corn and cotton. What's the good of this? The position of commodity futures is very small, especially after it becomes a real option, the position is several hundred, and the price difference is very large. If the option is traded in the secondary market, there may be losses, but it can be exercised immediately and traded as a futures product, with much better liquidity.
According to the relationship between the strike price and the market price, options can be divided into real options, flat options and virtual options. Real options: options with strike price lower than the current market price in call options and options with strike price higher than the market price in put options. Flat option: Call option (delta? 0.5), or a put option (delta? -0.5); Generally speaking, flat options have the greatest time value and are usually the most active in trading. Virtual option: an option whose strike price is higher than the market price and whose strike price is lower than the market price.
According to the different trading places of options, they can be divided into OTC options and OTC options. OTC options are mainly non-standardized options contracts for institutional investors in non-centralized trading places, such as our exercise trading methods, trading prices and other treaties, which are all signed in the contracts and lack of unified standards. The floor option refers to the standardized option contract that is publicly listed on the exchange and can be publicly traded by investors.